History

Statue of Francesco Grimaldi, "Il Malizia" ("the Cunning"), disguised as a monk with a dagger hidden under the cloak of his habit. However, he was ousted by the Genoese just four years later. The Grimaldi family purchased Monaco from the Crown of Aragon in 1419.

Monaco's name comes from the 6th century BC nearby PhocaeanGreek colony. Referred to by the Ligurians as Monoikos, from the Greek "μόνοικος", "single house", from "μόνος" (monos) "alone, single"[12] + "οἶκος" (oikos) "house",[13] which bears the sense of a people either settled in a "single habitation" or of "living apart" from others. According to an ancient myth, Hercules passed through the Monaco area and turned away the previous gods.[14] As a result, a temple was constructed there, the temple of Hercules Monoikos. Because the only temple of this area was the "House" of Hercules, the city was called Monoikos.[15][16] It ended up in the hands of the Holy Roman Empire, which gave it to the Genoese. An ousted branch of Genoese family, the Grimaldi, contested it for a hundred years before actually gaining control. Though the Republic of Genoa would last until the 19th century, they allowed the Grimaldi family to keep Monaco, and, likewise, both France and Spain left it alone for hundreds of years. France did not annex it until the French Revolution, but after the defeat of Napoleon it was put under the care of the Kingdom of Sardinia. In the 19th century, when Sardinia became a part of Italy, the region came under French influence again but France allowed it to remain independent. Like France, Monaco was over-run by the Axis powers during the Second World War and for a short time was administered by Italy, then the Third Reich, before finally being liberated. Although the occupation lasted for just a short time, it meant the deportation of the Jewish population and execution of several resistance members from Monaco. Since then Monaco has been independent but has taken some steps towards integration with the European Union.

Arrival of the Grimaldi family

Following a land grant from Emperor Henry VI in 1191, Monaco was refounded in 1215 as a colony of Genoa.[17][18] Monaco was first ruled by a member of the House of Grimaldi in 1297, when Francesco Grimaldi, known as "Il Malizia" (translated from Italian either as "The Malicious One" or "The Cunning One"), and his men captured the fortress protecting the Rock of Monaco while dressed as Franciscanmonks – a monaco in Italian, although this is a coincidence as the area was already known by this name.[19] Francesco, however, was evicted only a few years afterwards by the Genovese forces, and the struggle over "the Rock" continued for another century.[20] The Grimaldi family was Genoese and the whole thing was something of a family feud. However, the Genoese had other battles to fight and in the late 1300s Genoa was in a big fight with the Crown of Aragon over Corsica.[21] The Crown of Aragon eventually became a part of Spain through marriage (see modern day Catalan) and other parts drifted into various pieces of other kingdoms and nations.[21]

1400–1800

In 1419, the Grimaldi family purchased Monaco from the Crown of Aragon and became the official and undisputed rulers of "the Rock of Monaco". In 1612 Honoré II began to style himself "Prince" of Monaco.[22] In the 1630s, he sought French protection against the Spanish forces and, in 1642, was received at the court of Louis XIII "Duc et Pair Etranger".[23] The princes of Monaco thus became vassals of the French kings while at the same time remaining sovereign princes.[24] Though successive princes and their families spent most of their lives in Paris, and intermarried with French and Italian nobilities, the House of Grimaldi is Italian. The principality continued its existence as a protectorate of France until the French Revolution.[25]

In 1793, Revolutionary forces captured Monaco and it remained under direct French control until 1814, when the Grimaldi family returned to the throne.[23][26]

19th century

Between 1793 and 1814 Monaco was occupied by French (in this period much of Europe had been overrun by French under command of Napoleon)[23][26] The principality was reestablished in 1814 only to be designated a protectorate of the Kingdom of Sardinia by the Congress of Vienna in 1815.[26] Monaco remained in this position until 1860 when, by the Treaty of Turin, the Sardinian forces pulled out of the principality and the surrounding county of Nice (as well as Savoy) was ceded to France.[27] Monaco became a French protectorate once again. Prior to this time there was unrest in Menton and Roquebrune, where the townspeople had become weary of heavy taxation by the Grimaldi family. They declared their independence, hoping for annexation by Sardinia. France protested. The unrest continued until Charles III gave up his claim to the two mainland towns (some 95% of the principality at the time) that had been ruled by the Grimaldi family for over 500 years.[28] These were ceded to France in return for 4,100,000 francs.[29] The transfer and Monaco's sovereignty were recognized by the Franco-Monegasque Treaty of 1861. In 1869, the principality stopped collecting income tax from its residents—an indulgence the Grimaldi family could afford to entertain thanks solely to the extraordinary success of the casino.[30] This made Monaco not only a playground for the rich, but a favored place for them to live.[31]

Rainier III, who ruled until 2005, succeeded to the throne following the death of his grandfather, Prince Louis II, in 1949. On 19 April 1956, Prince Rainier married the American actress Grace Kelly; the event was widely televised and covered in the popular press, focusing the world's attention on the tiny principality.[37]

21st century

Buildings in Monaco (2008)

In 2002, a new treaty between France and Monaco specified that, should there be no heirs to carry on the Grimaldi dynasty, the principality would still remain an independent nation rather than revert to France. Monaco's military defence, however, is still the responsibility of France.[40][41]

On 31 March 2005, Rainier III, who was too ill to exercise his duties, relinquished them to his only son and heir, Albert.[42] He died six days later, after a reign of 56 years, with his son succeeding him as Albert II, Sovereign Prince of Monaco.

Following a period of official mourning, Prince Albert II formally assumed the princely crown on 12 July 2005,[43] in a celebration that began with a solemn Mass at Saint Nicholas Cathedral, where his father had been buried three months earlier. His accession to the Monégasque throne was a two-step event with a further ceremony, drawing heads of state for an elaborate reception, held on 18 November 2005, at the historic Prince's Palace in Monaco-Ville.[44]

On 27 August 2015, Albert II apologised for Monaco's role in facilitating the deportation of a total of 90 Jews and resistance fighters, of whom only nine survived. "We committed the irreparable in handing over to the neighbouring authorities women, men and a child who had taken refuge with us to escape the persecutions they had suffered in France," Albert said at a ceremony in which a monument to the victims was unveiled at the Monaco cemetery. "In distress, they came specifically to take shelter with us, thinking they would find neutrality."[45]

In 2015, Monaco unanimously approved a modest land reclamation expansion intended primarily for some desperately needed housing and a small green/park area.[46] Monaco had previously considered an expansion in 2008, but called it off.[46] The plan is for about six hectares of apartment buildings, parks, shops and offices for about 1 billion euros for the land.[47] The development will be adjacent to the Larvotto district and also plans a small marina.[47][48] There were four main proposals, and the final mix of use will be finalised as the development progresses.[49] The name for the new district is Anse du Portier.[48]

Under the 1962 constitution, the prince shares his veto power with the unicameralNational Council.[53] The 24 members of the National Council are elected for five-year terms; 16 are chosen through a majority electoral system and 8 by proportional representation.[54] All legislation requires the approval of the National Council, which is currently dominated by the conservative Rally and Issues for Monaco (REM) party which holds twenty seats.[54]Union Monégasque holds three seats[54] while Renaissance holds one seat. The principality's city affairs are directed by the Communal Council,[55] which consists of fourteen elected members and is presided over by a mayor.[56] Unlike the National Council, councillors are elected for four-year terms,[57] and are strictly non-partisan, however, oppositions inside the council frequently form.[55][58]

Administrative divisions

This section is outdated. Please update this article to reflect recent events or newly available information.(July 2015)

Monaco is the second smallest country (by area) in the world; only Vatican City is smaller.[59] Monaco is also the world's second smallest monarchy,[60] and is the most densely populated country in the world.[61] The state consists of only one municipality (commune). There is no geographical distinction between the State and City of Monaco, although responsibilities of the government (state-level) and of the municipality (city-level) are different.[52] According to the constitution of 1911, the principality was subdivided into three municipalities:[62]

Monaco-Ville, the old city on a rocky promontory extending into the Mediterranean, known as the Rock of Monaco, or simply "The Rock";

The municipalities were merged into one in 1917, after accusations that the government was acting according to the motto "divide and conquer," and they were accorded the status of Wards or Quartiers thereafter.

Fontvieille, was added as a fourth ward, a newly constructed area claimed from the sea in the 1970s;

An additional ward was planned by new land reclamation to be settled beginning in 2014[63] but Prince Albert II announced in his 2009 New Year Speech that he had ended plans due to the current economic climate.[64] However, Prince Albert II in mid-2010 firmly restarted the program.[65][66] In 2015, a new development called Anse du Portier was announced.[48]

Security

The wider defence of the nation is provided by France. Monaco has no navy or air force, but on both a per-capita and per-area basis, Monaco has one of the largest police forces (515 police officers for about 36,000 people) and police presences in the world.[76] Its police includes a special unit which operates patrol and surveillance boats.[77]

There is also a small military force. This consists of a bodyguard unit for the Prince and the palace in Monaco-Ville called the Compagnie des Carabiniers du Prince (Prince's Company of Carabiniers), which is equipped with modern weapons such as M16A2 rifles and 9 mm pistols (Glock 17),[78] and which together with the militarized, armed fire and civil defence Corps (Sapeurs-Pompiers) forms Monaco's total public forces.[79] The Compagnie des Carabiniers du Prince was created by Prince Honoré IV in 1817 for the protection of the Principality and the Princely family. The company numbers exactly 116 officers and men; while the NCOs and soldiers are local, the officers have generally served in the French Army. In addition to their guard duties as described, the Carabiniers patrol the Principality's beaches and coastal waters.[80]

Climate

Monaco has a warm-summer Mediterranean climate (Köppen climate classification: Csa), which is influenced by the oceanic climate and the humid subtropical climate. As a result, it has warm, dry summers and mild, rainy winters.[94] Cool and rainy interludes can interrupt the dry summer season, the average length of which is also shorter. Summer afternoons are infrequently hot (indeed, temperatures > 30 °C or 86 °F are rare) as the atmosphere is temperate because of constant sea breezes. On the other hand, the nights are very mild, due to the fairly high temperature of the sea in summer. Generally, temperatures do not drop below 20 °C (68 °F) in this season. In the winter, frosts and snowfalls are extremely rare and generally occur once or twice every ten years.[95][96]

One of Monaco's main sources of income is tourism. Each year many foreigners are attracted to its casino (where citizens are denied entry) and pleasant climate.[83][107] It has also become a major banking center, holding over €100 billion worth of funds.[108] The principality has successfully sought to diversify its economic base into services and small, high-value-added, non-polluting industries, such as cosmetics and biothermics.[101]

Monaco is not a member of the European Union. However, it is very closely linked via a customs union with France and, as such, its currency is the same as that of France, the euro. Before 2002, Monaco minted its own coins, the Monegasque franc. Monaco has acquired the right to mint euro coins with Monegasque designs on its national side.

Gambling industry

The plan for casino gambling was mooted during the reign of Florestan I in 1846. Under Louis-Philippe's petite-bourgeois regime, however, a dignitary such as the Prince of Monaco was not allowed to operate a gambling house.[17] All this changed in the dissolute Second French Empire under Napoleon III. The House of Grimaldi was in dire need of money. The towns of Menton and Roquebrune, which had been the main sources of income for the Grimaldi family for centuries, were now accustomed to a much improved standard of living and lenient taxation thanks to Sardinian intervention and clamored for financial and political concession, even for separation. The Grimaldi family hoped the newly legal industry would help alleviate the difficulties they faced, above all the crushing debt the family had incurred, but Monaco's first casino would not be ready to operate until after Charles III assumed the throne in 1856.

The grantee of the princely concession (licence) was unable to attract enough business to sustain the operation and, after relocating the casino several times, sold the concession to French casino magnates François and Louis Blanc for 1.7 million francs. The Blancs had already set up a highly successful casino (in fact the largest in Europe) in Bad-Homburg in the Grand Duchy of Hesse-Homburg, a small German principality comparable to Monaco, and quickly petitioned Charles III to rename a depressed seaside area known as "Les Spelegures (Den of Thieves)" to "Monte Carlo (Mount Charles)."[110] They then constructed their casino in the newly dubbed "Monte Carlo" and cleared out the area's less-than-savory elements to make the neighborhood surrounding the establishment more conducive to tourism.

The Blancs opened Le Grand Casino de Monte Carlo in 1858 and the casino benefited from the tourist traffic the newly built French railway system created.[111] Due to the combination of the casino and the railroads, Monaco finally recovered from the previous half-century of economic slump and the principality's success attracted other businesses.[112] In the years following the casino's opening, Monaco founded its Oceanographic Museum and the Monte Carlo Opera House, 46 hotels were built and the number of jewelers operating in Monaco increased by nearly five-fold. By 1869, the casino was making such a vast sum of money that the principality could afford to end tax collection from the Monegasques — a master stroke that was to attract affluent residents from all over Europe.

Taxes

Residential area in Monaco

Some have tried to use Monaco as a "tax haven" from their own country's taxes. However, Monaco as an independent country is not obligated pay taxes to other countries. Monaco levies no income tax on individuals subject to some conditions.[114][115] The absence of a personal income tax in the principality has attracted to it a considerable number of wealthy "tax refugee" residents from European countries who derive the majority of their income from activity outside Monaco; celebrities such as Formula One drivers attract most of the attention, but the vast majority of them are lesser-known business people.[103][116] Citizens of France are not included in the no personal income tax rule.[117]

In 2000, a report by the French parliamentarians, Arnaud Montebourg and Vincent Peillon, alleged that Monaco had relaxed policies with respect to money laundering, including within its famed casino, and that the government of Monaco had been placing political pressure on the judiciary, so that alleged crimes were not being properly investigated.[121]

In 2000, the Financial Action Task Force on Money Laundering (FATF) stated: "The anti-money laundering system in Monaco is comprehensive. However, difficulties have been encountered with Monaco by countries in international investigations on serious crimes that appear to be linked also with tax matters. In addition, the FIU of Monaco (SICCFIN) suffers a great lack of adequate resources. The authorities of Monaco have stated that they will provide additional resources to SICCFIN."[122] The Principality is no longer blamed in the 2005 FATF report, as well as all other territories.[123][124] However, since 2003, the International Monetary Fund (IMF) has identified Monaco, along with 36 other territories, as a tax haven.[125]

The Council of Europe also decided to issue reports naming tax havens. Twenty-two territories, including Monaco, were thus evaluated between 1998 and 2000 on a first round. Monaco was the only territory that refused to perform the second round, between 2001 and 2003, whereas the 21 other territories had planned implementing the third and final round, planned between 2005 and 2007.[126]

Monaco has high social insurance taxes payable by both employers and employees. The employers' contributions are between 28%–40% (averaging 35%) of gross salary including benefits, and employees pay a further 10%–14% (averaging 13%).[127]

Numismatics

Of interest to numismatists, in Monaco the euro was introduced in 2002, having been preceded by the Monégasque franc.[128] In preparation for this date, the minting of the new euro coins started as early as 2001. Like Belgium, Finland, France, the Netherlands, and Spain, Monaco decided to put the minting date on its coins. This is why the first euro coins from Monaco have the year 2001 on them, instead of 2002, like the other countries of the Eurozone that decided to put the year of first circulation (2002) on their coins.[129][130] Three different designs were selected for the Monégasque coins.[131] However, in 2006, the design was changed after the death of ruling Prince Rainier to have the effigy of Prince Albert.[131][132]

Monaco also has a rich and valuable collection of collectors' coins, with face value ranging from €5 to €100.[133] These coins are a legacy of an old national practice of minting silver and gold commemorative coins.[134][135] Unlike normal issues, these coins are not legal tender in all the Eurozone.[136] The same practice concerning commemorative coins is exercised by all eurozone countries.

Population

Demographics

Monaco's total population was 37,800 in 2014.[137] Monaco's population is unusual in that the native Monegasques are a minority in their own country: the largest group are French nationals at 28.4%, followed by Monegasque (21.6%), Italian (18.7%), British (7.5%), Belgian (2.8%), German (2.5%), Swiss (2.5%) and U.S. nationals (1.2%).[138]

Citizens of Monaco, whether born in the country or naturalised, are called Monegasque.[139] Monaco has the world's highest life expectancy at nearly 90 years.[140]

The traditional national language is Monégasque, now spoken by only a minority of residents and as a common second language by many native residents. It is a Romance language and resembles Ligurian, which is spoken in Genoa. In Monaco-Ville, street signs are printed in both French and Monégasque.[141][142]

Roman Catholic

The official religion is Roman Catholicism, with freedom of other religions guaranteed by the constitution.[143] There are five Roman Catholic parish churches in Monaco and one cathedral, which is the see of the archbishop of Monaco.

The diocese, which has existed since the mid-19th century, was raised to a non-metropolitan archbishopric in 1981 as the Archdiocese of Monaco and remains exempt (i.e. immediately subject to the Holy See). The patron saint is Saint Devota.

Anglican

There is one Anglican church (St. Paul's Church), located in the Avenue de Grande Bretagne in Monte Carlo. In 2007 this had a formal membership of 135 Anglicans resident in the principality, but was also serving a considerably larger number of Anglicans temporarily in the country, mostly as tourists. The church site also accommodates an English language library of over 3,000 books.[144] The church is part of the Anglican Diocese in Europe.

Jewish

The Association Culturelle Israélite de Monaco (founded in 1948) is a converted house containing a synagogue, a community Hebrew school, and a kosher food shop, located in Monte Carlo.[145] The community mainly consists of retired Jews from Britain (40%) and North Africa. Two-thirds of the Jewish population is Sephardic, mainly from North Africa, while the other third is Ashkenazi.[146]

Muslim

The Muslim population of Monaco consists of about 280 people, most of whom are exclusively residents, not citizens.[147] The majority of the Muslim population of Monaco are Arabs, though there are smaller Turkish minorities as well.[148] Monaco does not have any mosques.[149]

Zoroastrianism

The Zoroastrian community of Monaco is one of the oldest communities in Monaco and consists of mainly dual Monegasque-Iranian citizens, but various other ethnic groups in Monaco have converted to Zoroastrianism.[150] The city of Monaco has several holy Zoroastrian fire temples.[151] The Monegasque Zoroastrian community also consists of a village with several boutiques and other stores.[151][152]

Sport

Formula One

Since 1929, the Monaco Grand Prix has been held annually in the streets of Monaco.[153] It is widely considered to be one of the most prestigious automobile races in the world. The erection of the Circuit de Monaco takes six weeks to complete and the removal after the race takes another three weeks.[153] The circuit is incredibly narrow and tight and its tunnel, tight corners and many elevation changes make it perhaps the most demanding Formula One track.[154] Driver Nelson Piquet compared driving the circuit to "riding a bicycle around your living room".

The 2009 Tour de France, the world's premier cycle race, started from Monaco with a 15 km (9 mi) closed-circuit individual time trial starting and finishing there on the first day, and the 182 km (113 mi) second leg starting there on the following day and ending in Brignoles, France.[161]

Monaco also stage part of the Global Champions Tour (International Show-jumping). Acknowledged as the most glamorous of the series, Monaco will be hosting the world's most celebrated riders, including Monaco's own Charlotte Casiraghi, in a setting facing out over the world's most beautiful yachts, and framed by the Port Hercules and Prince's palace.[162] In 2009, the Monaco stage of the Global Champions tour took place between 25–27 June.

The Monaco Marathon is the only marathon in the world to pass through three separate countries, those of Monaco, France and Italy, before the finish at the Stade Louis II.

The Monaco Ironman 70.3 triathlon race is an annual event with over 1,000 athletes competing and attracts top professional athletes from around the world. The race includes a 1.9 km (1.2 mi) swim, 90 km (56 mi) bike ride and 21.1 km (13.1 mi) run.

Colleges and universities

There is one university located in Monaco, namely the International University of Monaco (IUM), an English-language school specializing in business education and operated by the Institut des hautes études économiques et commerciales (INSEEC) group of schools.

Monaco made a special agreement with France in 1963 in which French customs laws apply in Monaco and its territorial waters.[117] Also, French citizens are exempted from Monaco's lack of personal income tax.[117] Monaco uses the euro but is not a member of the European Union.[117] Monaco shares a 6 km border with France but also has about 2 km of coastline with the Mediterranean sea.[176] Two important agreements that support Monaco's independence from France include the Franco-Monegasque Treaty of 1861 and the French Treaty of 1918 (see also Kingdom of Sardinia The United States CIA factbook records 1419 as the year of Monaco's independence).[176]

There are two "full" embassies in Monaco; France and Italy.[177] There are about another thirty or so consulates.[177] By the 21st century Monaco maintained embassies in Belgium (Brussels), France (Paris), Germany (Berlin), the Vatican, Italy (Rome), Spain (Madrid), Switzerland (Bern), United Kingdom (London) and the United States (Washington).[177]

In the year 2000 nearly two thirds of the residents of Monaco were foreigners[178] In 2015 the immigrant population was estimated at 60%[176] However, it is reported to be difficult to gain citizenship in Monaco, or least in relative number there is not many people who do so.[169] In 2015 an immigration rate of about 4 people per 1,000 was noted, which works out to something like 100–150 people a year.[179] The population of Monaco went from 35,000 in 2008 to 36,000 in 2013, and of that about 20 percent were native Monegasque[180] (see also Nationality law of Monaco).

The common issue Monaco has with other countries is if the foreigner tries to use Monaco to avoid paying taxes in their own country.[176] Monaco actually collects a number of taxes including a 20% VAT and 33% on companies unless they make over 75% of their income inside Monaco.[176] Monaco does not allow dual-citizenship, but does have multiple paths to citizenship including by declaration and naturalisation.[181] In many cases the key issues for citizens is not attaining residency in Monaco, but their ties to their departure country.[181] For example, French citizens must still pay taxes to France even if they live full-time in Monaco unless they resided in the country before 1962 for at least 5 years.[181] In the early 1960s there was some tension between France and Monaco over taxation.[182]

There are no border formalities entering or leaving to France. For visitors a souvenir passport stamp is available on request at Monaco's tourist office. This is located on the far side of the gardens that face the Casino.

↑In fact Francesco Grimaldi, who captured the Rock on the night of 8 January 1297, was forced to flee Monaco only four years after the fabled raid, never to come back. The Grimaldi family was not able to permanently secure their holding until 1419 when they purchased Monaco, along with two neighbouring villages, Menton and Roquebrune. Source: Edwards, Anne (1992). The Grimaldis of Monaco: The Centuries of Scandal – The Years of Grace. William Morrow. ISBN978-0-688-08837-8.

↑Declaration of 18 April 2004, by the representative of the OECD Centre for Tax Policy and Administration Gabriel Makhlouf regarding the list of alleged tax havens non-cooperatives countries comparable

The Monaco Times – a regular feature in The Riviera Times is the English language newspaper for the French – Italian Riviera and the Principality of Monaco provides monthly local news and information about business, art and culture, people and lifestyle, events and also the real estate market.